Principal Residence Exemption

Sellers who have taken advantage of the opportunity to retain two principal residence exemptions must file Form 4640 by December 31.

Legislation (signed in 2008) enables that the seller can retain an additional exemption for up to three years on property previously exempt as the owner's principal residence if the following criteria are met:

  • the property is not occupied
  • the property is for sale
  • the property is not leased or available for Lease
  • the property is not used for any business or commercial purpose.

For your convenience, a copy of Form 4640 is available at link to the form on the Michigan Government website.